Oil is the backbone of the global economy. It is used by almost every industrial sector you can think of. It’s easy to understand that if a nation has a lot of it, they also hold a lot of political and financial power. This is what makes Saudi Arabia so powerful. As the world’s largest oil producer, Saudi influence stretches far and wide.
On Sept 7, one day after the announcement, China signs a new trade agreement with Russia. Russia promises to sell China as much crude oil as it desires. In this agreement, crude will not be bought or sold with US dollars, between the two nations. This was the start of what became known as the “anti-dollar alliance” by two of the most powerful adversaries of the US. The very backbone of the US economy is crude oil. Therefore, this can be viewed as one of the biggest shifts in global currency in history – and nobody was talking about it!